Stardust Power joins Department of Energy-backed lithium extraction program
Stardust Power has joined a U.S. Department of Energy-backed program for a lithium extraction project titled 'Coal- and Waste Coal-based Electrodes for Direct Lithium Extraction from Domestic Waste Streams,' which was selected for award negotiations. The initiative aims to develop direct lithium extraction (DLE) technology using coal-derived materials to recover lithium from domestic waste streams, addressing the critical need for domestic lithium supply for battery manufacturing. This matters because it leverages abundant coal waste resources to reduce U.S. dependence on foreign lithium imports, with the DOE’s backing signaling strong federal support for alternative lithium sources.
Stardust Power, a developer of lithium refining and extraction technology, has been selected for award negotiations to join a U.S. Department of Energy (DOE)-backed lithium extraction program. The project, titled 'Coal- and Waste Coal-based Electrodes for Direct Lithium Extraction from Domestic Waste Streams,' aims to pioneer a novel approach to lithium recovery by utilizing coal and waste coal as raw materials for specialized electrodes. This initiative is part of the DOE’s broader push to accelerate domestic critical mineral supply chains and reduce reliance on foreign sources, particularly China, which dominates global lithium processing.
The project's selection underscores the growing importance of direct lithium extraction (DLE) technology, which offers a more environmentally friendly and efficient alternative to traditional brine evaporation or hard-rock mining. By focusing on waste streams—such as coal ash and mine tailings—the project could turn an environmental liability into a valuable resource, potentially unlocking new lithium sources in coal-rich regions of the United States like Appalachia, the Powder River Basin, and the Illinois Basin. Stardust Power’s involvement brings technical expertise in electrochemical separation and refining, complementing the DOE’s research infrastructure.
If successful, the technology could dramatically expand the domestic lithium supply, which is critical for electric vehicle (EV) batteries, grid storage, and defense applications. The DOE’s backing also signals federal confidence in DLE as a key pillar of the U.S. Critical Minerals Strategy, especially after the Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law allocated billions for domestic mineral processing. Industry analysts note that this project could reduce lithium extraction costs by up to 30% compared to conventional methods while also mitigating water use and land disturbance.
However, challenges remain in scaling the technology to commercial levels, securing consistent waste coal feedstock, and ensuring that the process meets environmental and community standards. The collaboration also aligns with efforts to revive coal-mining communities by creating new jobs in mineral extraction and refining, offering a just transition for workers in declining fossil-fuel sectors. For investors, this development highlights the growing intersection of traditional mining waste management and the battery metals supply chain, with Stardust Power positioned as a potential second-mover advantage in the DLE space.
As global lithium demand is projected to rise tenfold by 2030, according to Benchmark Mineral Intelligence, projects like this are essential to diversify supply beyond South American brine and Australian spodumene. The announcement comes amid heightened geopolitical tensions and export restrictions on lithium technology, making domestic innovation a strategic imperative. Stardust Power’s success could also catalyze similar DLE initiatives across other waste streams, from oil-field brines to geothermal fluids. In the near term, market watchers will look for pilot-scale results and partnerships with coal companies or waste management firms to secure material inputs.
The DOE’s decision to fund this specific DLE pathway also reflects a preference for technologies that can reuse existing infrastructure, such as coal mine sites and power plants. Overall, the Stardust Power-DOE collaboration represents a forward-looking move to transform the U.S. lithium landscape, leveraging waste-to-value technology for energy independence.